Question
Samantha has been working for a law firm and earning an annual salary of $80,000. She decides to open her own practice. Her annual expenses
Samantha has been working for a law firm and earning an annual salary of $80,000. She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. Refer to Scenario 13-5. According to an economist, which of the following revenue totals will yield her business $50,000 in economic profits?
- $185,700.
- $132,500.
- $55,200.
- $130,000.
- $100,200.
- $100,200.
- $130,000.
- $55,200.
- $132,500.
- $185,700.
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